DOWN WITH COSTS

Gisborne Times, Volume LXX, Issue 11191, 28 April 1930, Page 5

DOWN WITH COSTS

HONV MR. POLSON WOULD DO IT . CUSTOMS' TAXES TO DEFLOWERED BY £2,000,000 HEAVIER lAIPOSTS ON LUXURIES 'fb-esß Association-* INVERCARGILL, April 27. An -arresting and somewhat revolutionary proposal for changing the system of taxation to bring about a reduction in costs was one of the principal features of the addresses delivered, hero last evening By ‘Mr AV. J. Poison, Dominion president of the Farmers’ Union. After stressing the urgent need for a reduction in costs at the present time, Mr Poison briefly discussed Australia's attempt to solve the problem by tho erection of a higher tariff wall. Ho deprecated this, method and went on to propose what he averred was a better way than that to reduco the cost of living by removing taxation from tho necessaries of the people and placing taxes upon luxuries. Ho explained that this was a well-known method applied by many countries. He would reduce Customs taxation by .£2,000,000 upon the necessities and tools of the nation and he gave figties to show how it could be done. This would mean a. 2a per cent, reduction in tariff revenue and would work out at approximately 10 per cent, reduction in the cost, of living of the masses of people. He would replace that £2,000,000: (1) By taxation upon luxuries, such as amusements of all forms, which I eat ling newspapers had estimated a penny tax all round would bring in nearly £1,000,000. (2) By taxation upon the gross liquor sales of hotels, instead of tlie inequitable anti ridiculous £4O license ,fee, which an hotel paid irrespective of the monopoly value of their licenses.

(3) By a drastic increase in Customs taxation upon foreign, motor cars, sillcs, etc. (-1) By a tax upon the gross takings of foreign picture corporations whose share of the receipts of picture houses amounted, in some instances, to as muchi as G 6 per cent . (5) B,v increasing the totalisntor tax by 5 to 7 per cent. The gambling public would pay this and -it was only right, that, in cases such as the country was facing, those who wished to gamble should help through taxation. Air Poison went on to say that only those who could afford it. or were extravagant, would pay these tntxes. The result of bringing down the cost of living would be that the working expenses of industry would be lower and both primary and secondary industries would expand. The effect would be cumulative, because the lower costs would menu lower prices and still further reduction in the cost, ot living. Mr Poison said the economic movements would he in tlie right, direction instead of in the wrong direction ns at present. Labor had nothing to fear from such adjustments. It had the bulwark of the Arbitration Court to shelter it from any interference with decent standards of living and ho for one, realising that the Labor movement bad, by its own efforts, raised itself from the deplorable conditions of 1850 and created a standard of comfort for men and women, would be no party to any breaking down of that standard. The movement for increased eomfort for the people must go steadily on in the future, as it had in the past. Wages! would fall, but not until the cost of living had fallen. Instead of having to face reduced employment, Labor would find its standard of living maintained and general employment for everybody; the manufacturer would find his costs reduced and his ability to compete successfully increased; farmers, similarly, would benefit by decreased costs and the business man by improved business. The only guide to the future was experience of the past. AVe could profit by that experience if we tackled the job before us as a national problem and not in a. party spirit. He appealed to all parties to give the .plan impartial consideration.